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I I I I I I I I I I I I I I I I I I I . CHAPTER VIII FINANCIAL PROGRAM North Poudre Irrip,ation Company is an established non- profit corporation. The majority of the shareholders and users represent agricultural irrigation usage for the water. Although stock is owned by the City of Fort Collins, the annual assessments provided for operating revenues do not discriminate between types of use for shares held such as agricultural versus municipal and industrial. An operating revenue schedule was prepared for North Poudre Irrigation Company delineating the normal types of income developed over the last five years; 1976 through 1980. The water assessment for 1981 has been set at $80 per share with other items estimated based on past income. Ninety-five per cent of the income p,enerated for operation and maintenance is a result of the water assessments per share which are 'paid by the stockholders in the company on an annual basis. Other sources of income to the Irrigation Company includes stock transfer fees, leases, and water sales to contractors, and has been estimated to be $46,000,00 per year. Several payout schedules were commenced for this pro- ject based on various alternatives of funding for the remaining fifty percent. These schedules were prepared using a repaYflent schedule to the Colorado Water Conservation Board based on a total advance amount of $2,057,156.00 payable over forty years at five per cent interest, The Colorado Water Conservation Board emergency operating fund reauirement was met by provid- ing ten percent of ~n annual payment in the first ten years. In some instances, this fund was paid out in less than ten years in order to minimize the assessment per share. It is anticipated that North Poudre Irrigation Company will pay for the engineering, right-of-way acquisition, anq legal of the first portion of this project in the total amount of $489,261.00 out of their cash budget. This results in the remaining fifty percent matching funds they would be required to borrow in the amount of $1,567,895.00 from other sources. It is anticipated that this amount could be borrowed by North Poudre Ir.rif,ation Company from a funding agency such as the Wichita Bank of Cooperatives on a floating interest rate basis, For the purposes of one of these analysis, the repayment schedule vlas calculated at 18% in eaual annual payments over thirty years resulting in payments of $284,203.00. The assessments reauired were $93 per share for 1986 through 1991 and $92 per share thereafter until the end of the thirty year payout. -23-